Tesla Q4 Profits Exceed Expectations, Losses Shrink

Tesla reported its 2013 fourth quarter financial results, revealing higher than expected profits and strong sales. The company also divulged future plans.The California-based EV automaker reported a quarterly net income of $46 million, excluding one-time items. This is 33 cents per share, above original estimates of 21 cents a share. Tesla's losses decreased to $16.2 million from $90 million a year earlier.Part of the company's success can be attributed to growing sales. Tesla announced it sold 6,892 Model S cars last quarter and 22,477 for the year. The company is seeking to deliver over 35,000 Model S cars this year, up 55 percent from 2013.Next year, it also hopes to expand production capacity for the Model S, complete development for the new Model X SUV, and start early design work on a third-generation car. It is also looking to eventually develop a mega-factory for batteries, helping to reduce costs.On the news of Tesla's financial results, Tesla shares rose 11.8 percent to $216.41. This surge came after Tesla shares hit an all-time high a day earlier when the San Francisco Chronicle reported Tesla CEO Elon Musk has spoken with Apple's head of mergers and acquisitions.Source: Tesla, Reuters

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